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Enbridge (ENB) Hikes Dividend, Announces Financial Guidance

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Zacks Equity Research
·3 min read
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Enbridge Inc. ENB announced that its board of directors has approved an increase in quarterly dividend payment.

The new dividend of 83.5 Canadian cents represents a hike of 3% from the prior dividend of 81 Canadian cents. The increased dividend will be paid on Mar 1, 2021, to shareholders of record as of Feb 12, 2021. Thus, the annualized dividend of C$3.34 per share marks the North American energy infrastructure player’s 26thsuccessive annual common share dividend hike.

In its financial guidance update, the midstream energy player also mentioned its 2021 distributable cash flow (DCF) projection in the band of C$4.70-C$5.00 per share, reflecting an increase from the company’s 2020 DCF per share expectation at the midpoint of the C$4.50-C$4.80 range.

The positive developments represent resilience in Enbridge’s business model amid the coronavirus pandemic. The company’s overall operations have low exposure to pandemic-induced commodity price volatility. Moreover, given the nature of the midstream energy giant’s contractual agreements for pipeline assets, it has lower exposure to volume risks.

Enbridge added that there has been a continuous advancement in the execution of its C$16 billion growth projects. This is anticipated to help it secure an EBITDA growth of $2 billion through 2023 since 2021. Importantly, given the execution of the ongoing capital growth projects and a resilience business model in place, the company has reaffirmed 5-7% DCF per share growth through 2023 and beyond.

Enbridge Inc Price

Enbridge Inc Price
Enbridge Inc Price

Enbridge Inc price | Enbridge Inc Quote

Headquartered in Calgary, Canada, Enbridge currently carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space include Summit Midstream Partners, LP SMLP, DCP Midstream, LP DCP and HighPoint Resources Corporation HPR, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Summit Midstream has seen upward earnings estimate revisions for 2020 in the past seven days.

DCP Midstream has seen upward estimate revisions for 2020 earnings in the past 30 days.

HighPoint is likely to see earnings growth of 167.5% in 2020.

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